MNI BRIEF: Weak Yen Raises Capex, Materials Costs - BOJ

Some major Japanese electric power and gas firms have noted increased costs of overseas projects, while a a medium-size transport firm has experienced increased raw materials and difficulty hiring non-Japanese workers due to the weak yen, the Bank of Japan revealed Monday.

The BOJ released its survey of corporate activities after mid-1990s as part of comprehensive review.

The report found the number of businesses transferring high labour costs to sales prices is increasing as they also pass on the rise in import prices.

Many firms, regardless of the industry and scale, believe it appropriate for both prices and wages to rise, the report stated.

The BOJ’s easy policy had contributed to lower lending rates, improved availability and kept many inefficient companies in business, but had made securing workers harder while price competition had also increased, the businesses said.

They also said that the easy policy have delayed corporate metabolism.